- (1.) HEARD Sri R.R. Agarwal, learned advocate assisted by Sri Suyash Agarwal, learned counsel for the petitioner and Sri Govind Krishna, learned counsel for the respondent.
(2.) THE facts giving rise to the present writ petition lie in a very narrow canvass. The same are stated as under. Search warrant dated 2.9.2002 was executed, at the residence and at the bank of the assessee on 4.9.2002. A total sum of Rs. 77 lacs were seized after such search. The assessee made an application disclosing the source of the aforesaid cash and requested for return of the assets, under section 132(b)(i) of the Income Tax Act. This application of the assessee remained pending. The block assessment was completed on 30th September, 2004 and the assessing officer determined the assessee's liability at Rs. 95,59,525/ -. It is not in dispute that a sum of Rs. 40,000/ - was adjusted from the seized cash of Rs. 77 lacs on 29th December, 2005.
(3.) THE assessee not being satisfied with the block assessment order, filed an appeal before the Commissioner of Income Tax (Appeals), Allahabad. The appeal was finally allowed vide order dated 18.8.2006 and the demand was reduced to Rs. 3,15,430/ - under Section 158BC/251/154 of the Income Tax Act.;